The RealReal(REAL) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter 2025 gross merchandise value (GMV) was $520 million, a 20% increase year-over-year[5] - Total revenue for the third quarter 2025 reached $174 million, reflecting a 17% growth compared to the same period in 2024[5] - Adjusted EBITDA for the third quarter was $9.3 million, representing 5.4% of total revenue, up from 1.6% in the prior year[5] - The company reported a net loss of $(54) million, or (31.1)% of total revenue, compared to a net loss of $(18) million, or (12.1)% of total revenue in the same period in 2024[5] - Gross margin for the third quarter was 74.3%, a decrease of 60 basis points compared to the same period in 2024[5] - Total revenue for the three months ended September 30, 2025, was $173.573 million, a 17.4% increase from $147.755 million in the same period of 2024[22] - Gross profit for the three months ended September 30, 2025, was $128.920 million, compared to $110.713 million in 2024, reflecting a gross margin of 74.3%[22] - Operating expenses for the three months ended September 30, 2025, totaled $136.470 million, up from $125.315 million in 2024, representing an 8.7% increase[22] - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $54.051 million, compared to a net loss of $17.938 million in 2024[22] - Adjusted EBITDA for the three months ended September 30, 2025, was $9.294 million, representing 5.4% of total revenue, compared to 1.6% in 2024[27] Cash Flow and Assets - Cash and cash equivalents as of September 30, 2025, were $108.422 million, down from $172.212 million at the end of 2024[24] - Total assets decreased to $366.212 million as of September 30, 2025, from $423.095 million at the end of 2024[24] - Total liabilities as of September 30, 2025, were $751.264 million, a decrease from $830.471 million at the end of 2024[24] - The company reported a net cash used in operating activities of $12.510 million for the nine months ended September 30, 2025, compared to $1.148 million in 2024[26] - The company generated $19,330,000 in net cash from operating activities for the three months ended September 30, 2025, an increase from $9,073,000 in the same period of 2024[30] - Free cash flow for the three months ended September 30, 2025 was $13,718,000, compared to $2,134,000 in the same period of 2024[30] Buyer and Order Metrics - Trailing twelve months active buyers increased to 1,024,000, a 7% rise compared to the same period in 2024[5] - Average order value (AOV) was $584, marking a 12% increase year-over-year[5] - The number of active buyers increased to 1,024, up from 1,001 in the same period of 2024[30] - The average order value (AOV) for the three months ended September 30, 2025 was $584, compared to $581 in the same period of 2024[30] Future Projections - The company raised its full-year guidance for 2025, projecting GMV between $2.099 billion and $2.109 billion[7] - Fourth quarter 2025 GMV is expected to be between $585 million and $595 million, with total revenue projected between $188 million and $191 million[7] Strategic Initiatives - The company aims to enhance customer experience through deeper consignor relationships and ongoing AI initiatives[2] Loss Metrics - The company incurred a loss before provision for income taxes of $54.027 million for the three months ended September 30, 2025, compared to a loss of $17.866 million in 2024[22] - For the three months ended September 30, 2025, the company reported a net loss of $54,051,000 compared to a net loss of $17,938,000 for the same period in 2024[30] - Non-GAAP net loss attributable to common stockholders for the nine months ended September 30, 2025 was $21,739,000, a decrease from $35,700,000 in the same period of 2024[30] Merchandise Volume - Gross Merchandise Volume (GMV) for the three months ended September 30, 2025 was $519,814,000, up from $490,405,000 in the same period of 2024[30] - Net Merchandise Volume (NMV) for the three months ended September 30, 2025 was $397,062,000, compared to $370,757,000 in the same period of 2024[30] - Total revenue for the three months ended September 30, 2025 was $134,429,000, an increase from $128,620,000 in the same period of 2024[30] - The company reported a take rate of 37.9% for the three months ended September 30, 2025, consistent with the previous quarter[30]